Floods, fires exhausting disaster budget

FLOODING across Queensland and NSW last month will cost Suncorp between $200 million and $220 million in claims, accounting for much of the insurer's provision for natural disasters for the financial year.

Bushfires and storms in Victoria and Tasmania in January will cost $50 million, on top of the $147 million already booked in the December half of last year.

All up, that means about 80 per cent of Suncorp's $520 million provision for natural disaster claims has already been taken up.

Separately, the states will be watching closely how Queensland and the federal government resolve a key reconstruction issue potentially worth billions of dollars.

The floods provided a window of opportunity to ensure the reconstruction of major assets such as bridges was of a greater resilience than that destroyed said David Crisafulli, a minister leading recovery efforts.

Debate over the so-called ''betterment'' provisions of national arrangements flared after assets newly rebuilt after the floods of 2011 were again damaged or destroyed, with some works near Bundaberg completed just weeks ago.

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The floods ''provided a window on how absurd our practise has been in replacing infrastructure'' destroyed in a disaster, Mr Crisafulli said. ''It's in the interest of the federal government - and everybody else - to get it right the first time.''

A teleconference on Tuesday between Joe Ludwig, the federal minister appointed to assist the Queensland floods recovery, though, appears to have reached a breakthrough over guidelines.

''There was a genuine willingness from Senator Joe Ludwig to stand shoulder-to-shoulder with the state,'' Mr Crisafulli said.

Under existing rules the federal government will typically pay 75 per cent of the cost of replacing assets lost in a disaster.

Should the road or public asset be improved to increase its tolerance for future extreme events, the federal and state government split the cost - a result that has often proved too costly or difficult.

''We will work with Queensland to develop and deliver a revised national partnership agreement that meets the needs of the state to rebuild, be stronger, and get back on its feet,'' Senator Ludwig said.